Superannuation funds are squandering critical opportunities to force companies they invest in to step up on climate change, according to Market Forces analysis.
Will van de Pol, Market Forces asset management campaigner, said Market Forces had reviewed the voting records of the seven big super funds that had net zero commitments and who also disclosed their voting within days of an annual general meeting.
Active Super, BT Super, Cbus, HESTA, NGS Super, QSuper and Telstra Super populated the list.
“All but one of those funds voted against two or more key climate-related proposals in Australia since September,” van de Pol said.
“In fact, just 10 of the 32 votes identified were cast in favour of climate action. And given most funds haven’t even disclosed how they voted yet, climate voting records could be even worse across the broader superannuation sector.”
He said super fund members should demand for their super fund to vote for climate action on their behalf, with ANZ, NAB and Westpac all facing Market Forces backed shareholder votes urging them to stop funding expansion of the fossil fuel industry.
“All funds should vote in favour of these resolutions, especially those with their own net zero commitments,” he said.
“We have a chance to turn this around in the next few weeks. But we need to speak up now.”
The deputy governor has warned that, as super funds’ overseas assets grow and liquidity risks rise, they will need to expand their FX hedge books to manage currency exposure effectively.
Super funds have built on early financial year momentum, as growth funds deliver strong results driven by equities and resilient bonds.
The super fund has announced that Mark Rider will step down from his position of chief investment officer (CIO) after deciding to “semi-retire” from full-time work.
Rest has joined forces with alternative asset manager Blue Owl Capital, co-investing in a real estate trust, with the aim of capitalising on systemic changes in debt financing.